I am always amazed when I speak to people that they are in many cases paying standard variable rates for their home loan, or worse - when they don't have to. The sad thing is that it costs them valuable dollars in these tough times!
In lots of instances when I am talking to people they don't even know, and that's ok...though you should be aware if you are not even in the market.
Bank loyalty counts for very little. A good deal of people I talk to say they have been with XYZ Bank for many years, their kids are with them too and they presume that they are therefore being 'looked after'. Nothing could be more heart wrenching for them to then find out that for the last few years they have been paying 'rack rates' for the loan they thought they were being pampered on.
What might be the tell-tale signs of you not being on the correct rate, well if any of the following fit you then I would seriously give the bank a call and ask, and then call me direct to see what you could be on. The difference could save you significant $$$$.
Have you come off a fixed rate in the past few years? Many times when a client comes off a fixed term home loan they will be automatically rolled into the standard variable rate which is some three-quarters to 1% higher than the market depending on amounts etc.
Have you had a Low Doc loan in the past? Chances are if you have an 'old style' low doc loan then you are also paying over the odds as far as fair market rate goes.
Have you paid your loan down to under $250,000 since you first took it out? (or indeed have a loan under that amount). In some instances lenders will adjust your rate if your borrowings are not over a certain level.
Have you declined/queried any fees on your statements that you thought were excessive? Sometimes lenders impose a fee for larger loans to give people a reduced rate. This can be between $300 and $400 a year depending on the lender. Some people discover that coming out of their acccounts and tell the bank to stop it, and then the bank may adjust their rate to the standard rate as it no longer conforms to a professional package loan.
Have you had your loan for more that 4 years? Quite often older loans were not as flexible as their current counterparts and so you may have been paying in excess of your neighbours for quite some time.
No matter what the past has brought you, give your lender a call today and ask them what rate you are on. Then send me an email HERE telling me your loan size and what rate your bank told you you are currently on. I will tell you (at no cost) whether you are in the market or not and how much you may save by changing. I am happy to do this in the interests of fairness between all so that you are aware of your position in the market. You can make your own decision as to whether you accept it or not. This free offer is open till the end of May
Please note that refinancing also has its costs and any savings need to be measured against the costs (if any of doing so). We can assist with a cost analysis to provide you with the necessary information to make an informed decison.
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